The Dreaded Credit Report: How to make it the best it can be

Before being accepted for a mortgage loan, lenders will run a credit check to decide how much, if anything, they are willing to lend you.

A poor credit score could mean that you don’t get accepted for your dream loan, when a few changes could boost your chances of being accepted. Your score will vary depending on the lender, they prioritise different elements of your report to create a score, but if you make every part of your report as good as it can be then this won’t be as much of an issue.

Lenders care mostly about your CURRENT financial status, the most recent activities will take priority over old information. So you can boost you score by getting your finances in order

All of the following information will be presented on your credit report:

  • ✔Any previous credit applications
  • ✔Your basic profile information (such as name, age, etc)
  • ✔Any accounts or loans taken out with anybody else
  • ✔Any missed or late payments to bills/ credit cards/ loan repayments
  • ✔Any County Court Judgements against your name
  • ✔How much you already owe to any other lenders
  • ✔If you’ve ever been declared bankrupt
  • ✔If you are on the electoral register

These will not show on your credit report, however lenders may ask for information about them from you:

  • ✘Student Loans
  • ✘Your current salary
  • ✘Any Council Tax arrears
  • ✘Any parking fines
  • ✘Your medical history
  • ✘Any criminal record

How can you Improve your Credit Report?

With each lender prioritising different elements of your report, you can’t guarantee the same score with everyone, but as long as you make it as strong as you can, you will have the best available chances.

Check out your Report Before they do
There are a number of different services that offer to give you your credit report for free. Seeing this before any potential lenders do will allow you to spot any mistakes that may be on there that you could amend.
Get a Credit Card - But be Cautious
A credit builder credit card can be very helpful in boosting your credit report score - as long as you make repayments on time. Hefty interest rates for late payments could land you in more financial trouble. When done correctly, this method can be very helpful, but only do it if you know you can control your spending and repayments.
Pay your Bills on Time
If you have a history of making late payments on your bills, this will reflect badly on your credit report. Starting now, pay all of your bills on time, set reminders, budget, and cancel things you can't afford. Showing that you can take control of your finances will shed a positive light on your credit report
Take Control of any Previous Debt Repayments
If you're struggling to keep up with repayments on an old debt, seek out help and try to arrange a payment plan that you can really stick to.
Register to Vote
You may not be aware of this, but not being on the electoral bill can have a knock-on effect on your credit score. Registering can be a quick and easy solution to give your report that extra boost it may need.
Close any Unused Accounts
It will reflect well on your credit report to have a small amount of well managed banks and savings accounts, rather than a lot of unused and messy accounts.
Don't Apply for too many Loans
Just because different lenders score differently based on your credit report, this doesn't mean you should just apply with a number of lenders and see which one scores you the highest. Making many applications for credit chips away at your credit score too. Apply for one, if it doesn't work out, give it time, work on it, and then try again a few months later.
Remember: Lenders respect a report with a solid amount of financial control. Start now and the longer you keep your finances in check, the higher you will rank.

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